Financing Urban Transport Through Value Capture - Highway and Urban Environment - page 16

The VT represents around the 33% from all the urban transport's operational and
investment costs without taking into account the Paris region. In this region, the
companies also contribute with the 50% of the monthly ticket of their employees,
therefore, the companies' final contribution increases to the 43% [3] . Hence, this
tax is the main permanent funding source that allows vehicle modernization, to
have new infrastructures been built and other operational costs.
Munich, Germany
The mechanism used is based on the interest of the urban developer. If he is inter-
ested in obtaining the license to construct a neighborhood, first he has to obtain the
land value from a real estate experts' panel. After the land has the license and it has
started to being constructed, the land value will increase. The difference between
those two values is a measure that local authorities may claim, even till two third
parts of this difference, as a source to construct public infrastructure. The rest of the
value corresponds to the land developer [4] .
Hong Kong
The train system in Hong Kong is known for its high quality and by its self-financing
mechanisms without using public resources. To achieve so, they have implemented
different mechanisms such as the “Railway-Property Development Model”. This
model gives the rail companies the right to build urban developments around
the stations or even underneath or over the stations [5] . This mechanism allows
maximizing the urban use around stations. Therefore, people could access very
easily to the transport system and much more properties are benefited by the
transport service.
The above implies that urban developments work as financial organisms of
transport projects.
This kind of financial schemes have been used to develop 6 million square
meters of housing and 5 million square meters of office and retail areas [5] . That
explains in part their self-financing transport system.
Spanish Situation
Taxes and Tributes
In the next paragraphs there are briefly explained the most important property taxes
as well as the Special Contribution tribute case.